M AHAVITARAN INFRASTRUCTURE P LAN

SECTION 8: PRICE V ARIATION FORMULAE

IEEMA/PVC/DIST-CU/2003

Effective from : 1 June 2003.

st

PRICE VARIATION CLAUSE FOR COPPER WOUND DISTRIBUTION TRANSFORMERS COMPLETE WITH ALL ACCESSORIES AND COMPONENTS
(Of ratings up to 10 MVA and voltage up to 33KV) supplied against domestic contracts The price quoted/confirmed is based on the input cost of raw materials/components and labor cost as on the date of opening of tender and the same is deemed to be related to prices of raw materials and all India average consumer price index number for industrial workers as specified in the price variation clause given below. In case of any variation in these prices an d i n d ex n u m b er s , t h e p r i c e p ay ab l e s h al l b e s u b j ec t t o ad j u s t m en t , u p o r d o w n i n accordance with the following formula: Po P = -----100 C ES IS IM TB W 13 + 23 ------ + 27 ------- + 9 ------- + 5 ------- + 11 ------- + 12 ---Co Eso ISo Imo TBo Wo

Wherein P = Ex works price payable as adjusted in accordance with the above formula. Po = Co = Ex works price quoted/confirmed. Average LME settlement price of copper wire bars (refer notes) This price is as applicable for the month, two months prior to the date of opening of tender.

ESo = C&F price of CRGO Electrical Steel Sheets (refer notes) st This price is as applicable on the 1 working day of the month, one month prior to the date of opening of tender. ISo = Wholesale price index number for `Iron & Steel (Base: 1993-94=100) (refer notes). st This index number is as applicable for t h e w eek en d i n g 1 Sat u r d ay o f t h e month, three months prior to the date of opening of tender. Price of Insulating materials (refer notes) st This price is as applicable on the 1 working day of the month, one month prior to the date of opening of tender. Price of Transformer Oil Base Stock (refer notes) st This price is as applicable on the 1 working day of the month, two months prior to the date of opening of tender. All India average consumer price index number for industrial workers, as published by the Labor Bureau, Ministry of Labor, Govt. of India (Base 1982 = 100) This index number is as applicable on the first wor king day of the month, Three months prior to the date of opening of tender.

IMo =

TBo =

Wo =

For example, if date of opening of tender falls in May 2004, the applicable prices of Copper Wire Bars (Co) and Transformer Oil Base Stock (TBo) should be for the month March 2004, where as the applicable prices of CRGO Steel Sheets (ESo), and insulating material (IMo) st s h o u l d b e as o n 1 April 2004 and Wholesale price index number for `Ir on & Steel (ISo) s h o u l d b e f o r t h e w eek en d i n g f i r s t Sat u r d ay o f Feb r u ar y 2004 an d al l In d i a av er ag e consumer price index no. (Wo) should be for the month of February 2004.

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SECTION 8: PRICE V ARIATION FORMULAE

The above prices and indices are as published by IEEMA vide circular reference number IEEMA(PVC)/TRF/-/ - prevailing as on first working day of the monthi.e. one month prior to the date of opening of tender. C = Average LME settlement price of copper wire bars (refer notes) This price is as applicable for the month, two months prior to the date of delivery. C&F price of CRGO Electrical Steel Sheets (refer note) st This price is as applicable on the 1 working day for the month, one month prior to the date of delivery. Wholesale price index number for `Iron & Steel (Base: 1993-94=100) (refer notes) st This index number is as applicable for the week ending 1 Saturday of the month, three months prior to the date of delivery. Price of Insulating Materials (refer notes) st This price is as applicable on the 1 working day of the month, one month prior to the date of delivery. Price of Transformer Oil Base Stock (refer notes) st This price is as applicable on the 1 working day of the month, two months prior to the date of delivery. All India average consumer price index number for industrial workers, as published by the Labor Bureau, Ministry of Labor, Govt. of India (Base 1982 = 100) This index number is as applicable on the first working day of the month three months prior to the date of delivery.

ES =

IS =

IM =

TB =

W =

For example, if date of delivery in terms of clause given below falls in December 2004, the applicable prices of Copper Wire Bars [C] and Transformer Oil Base Stock(TB) should be for t h e m o n t h o f Oc t o b er 2004; w h er e as ap p l i c ab l e p r i c es o f CRGO St eel Sh eet s [ ES] , st In s u l at i n g m at er i al [ IM] s h o u l d b e as o n 1 No v em b er 2004 an d Wh o l es al e p r i c e i n d ex number for `Iron and Steel [IS] should be for the week ending first Saturday of September 2004 an d al l In d i a av er ag e c o n s u m er p r i c e i n d ex n o . [ W] s h o u l d b e f o r t h e m o n t h o f September 2004. The date of delivery is the date on which the transformer is notified as being ready for inspection/dispatch or the contracted delivery date, whichever is earlier, wherever supplies are effected within contract u al d el i v er y p er i o d . In c as e s u p p l i es ar e ef f ec t ed af t er t h e contractual delivery period, the date of delivery for PV purpose would be the one of the above two on which the price variation is less. NOTES : a] All prices of raw materials are exclusive of modvatable excise/CV duty amount and exclusive of any other central, state or local taxes, octroi etc. Transformer manufacturers import major raw materials like Copper, CRGO Steel Sheets, TOBS and Insulating Pressboards etc. The landed cost of these imported raw materials includes applicable custom duty but exclusive of modvatable CVD. b] All prices are as on first working day of the month. c] The details of prices are as under 1] Th e L ME p r i c e o f Co p p er Wi r e B ar s (i n Rs ./MT) i s t h e L ME av er ag e settlement price of Copper Wire Bars for one month prior to the month of the circular converted into Indian Rupees with applicable exchange st rates prevailing as on 1 working day of the subsequent month. This price is the landed cost, inclusive of applicable customs duty only but exclusive of countervailing duty.

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SECTION 8: PRICE V ARIATION FORMULAE

2]

The price of CRGO Electrical Steel Sheets suitable for transformers of rating up to 10MVA an d v o l t ag e up to 33K V (i n Rs ./MT) i s t h e average C&F price in US $ per MT converted into Indian Rupees with st appl i c abl e ex c hange r at e pr ev ai l i ng as on 1 w o r k i n g d ay o f t h e month, as quoted by primary producers. This price is the landed c o s t , i n c l u s i v e o f ap p l i c ab l e c u s t o m s d u t y o n l y b u t ex c l u s i v e o f countervailing duty. The Wholesale price index number for `Iron & Steel is as published by the Office of Economic Advisor, Ministry of Industry, Govt. of India, New Delhi with base 1993-94=100. This wholesale price index number is being published weekly on provisional basis. However, the same g et s f i n al i zed af t er ei g h t w eek s an d i s n o r m al l y av ai l ab l e af t er t w o months. Therefore, IEEMA are considering in their calculations this final index for the first Saturday of the months two months prior to the d at e o f w h i c h t h e p r i c es o f o t h er r aw m at er i al s s u c h as A I, IM ar e published for the corresponding month.

3]

4] The average price of Insulating materials (in Rs./Kg) of pre-compressed pressboards of size 3 mm and 10 mm thick, 3200 mm x 4100 mm C&F p r i c e i n f r ee c u r r en c y p er MT c o n v er t ed i n t o In d i an Ru p ees w i t h st ap p l i c ab l e ex c h an g e r at es p r ev ai l i n g as o n 1 w o r k i n g d ay o f t he month as quoted by primary suppliers. This price is the landed cost, inclusive of applicable customs duty only but exclusive of countervailing duty. 5] Th e p r i c e o f TOB S i s C& F p r i c e (i n Rs ./K .L t r .) f o r N-60 g r ad e Oi l st published in ICIS-LOR bulletin for the 1 week of the previous month. Th i s p r i c e i s n o r m al l y p u b l i s h ed i n US$ p er US Gal l o n , w h i c h i s st converted in Rs./K.Ltr. with applicable exchange rate prevailing on 1 working day of the subsequent month. This price is the landed cost, inclusive of applicable customs duty only but exclusive of countervailing duty. d ] So m e p u r c h as er s ar e p u r c h as i n g o i l i m m er s ed Tr an s f o r m er s from manufacturers without first filling of oil. Oil for first filling is procured and filled by the purchasers. For such supplies PVC formula, excluding Oil will apply as

Po P = -----89

C ES IS IM W 13 + 23 ------ + 27 ------ + 9 ------ + 5 ------ + 12 -----Co Eso ISo Imo Wo

Where description of P, Po, C, ES, IS, IM and W etc. remains same as mentioned earlier.

SIGNATURE OF THE TENDERER

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